New Product Development

Conjoint Analysis:

Utility function:

U = a1 s1 + a2s2 + a3s3 + g1 p1 + g2 p2 + g3 p3

Dummy Variable coding: for 2 sub types, use 1 dummy variable….for 3, use 2 and for 4 use 4

S x1 x2 P x3 x4

50 1 0 5 1 0

60 0 1 6 0 1

70 0 0 7 0 0

Using regression, Analyze -> regression -> linear…………enter ratings into dependent and above coded variables into independent

U = b0 + b1 x1 + b2 x2 + b3 x3 + b4 x4

A1 + a2 + a3 = 0 g1 + g2 + g3 = 0

A1 – a3 = b1 g1 – g3 = b3

A2-a3 = b2 g2 – g3 = b4

Solve and get a1 a2 a3 g1 g2 g3

Part Worths (Utilities of each attributes):

Highest a – lowest a

Total worth: sum of all part worths

Importance: part worths / total worth

Highest importance -> that attribute is most important

Conjoint (trade-off) analysis has become one of the most widely-used quantitative methods in Marketing Research. It is used to measure the perceived values of specific product features, to learn how demand for a particular product or service is related to price, and to forecast what the likely acceptance of a product would be if brought to market

MEDIA RESEARCH:

Reach of A Media: % of People who consume a media a minimum number of times in a stipulated period. Eg: •TV – Atleast watched once a week •Cinema – Atleast seen once a month

Reach of A Channel: % of People who have seen a channel for atleast “n” minutes

Reach = (tg which saw commercial or prog + additional tg which saw next prog) / total tg

Effective reach:

@1+ = 8/8 =100% …… total tg which saw / total tg

@2+ = 3/8 = 38% …….. add position added from below

@3+ = 1/8 = 13% ….. add position added from below

TVR(TV rating) / TRP ( TV rating points) measures the popularity of a programme/ advertisement by comparing the number of people who watched against the total available as a whole. (% of ppl...